Which of the assumptions below assures us that economic profit will be zero in long-run equilibrium for perfectly competitive firms?

Question

Quizplus · Accepted Answer

In a perfectly competitive market, easy entry and exit of firms ensures that in the long run, economic profit will be zero. This is because if firms are making positive economic profits, new firms will enter the market, increasing supply and driving down prices and profits. Conversely, if firms are making losses, some will exit the market, reducing supply and increasing prices and profits back to zero.

Which of the Assumptions Below Assures Us That Economic Profit